There’s a lot of buzz these days about the “digital disruption” and its effect on the accounting profession. So, I decided to study the impact of digital disruption on the accounting profession, and to learn how progressive accounting firms are turning it into an opportunity.
Many of the observations and predictions are rather alarming. Here are just a few:
“The business environment we live in today is radically different than the one we lived in just 2 to 3 years ago. The imperative to become a digital business is well understood, but few business leaders have the skills to execute on a truly digital strategy.”
Sharyn Leaver, VP, Forrester Research
“The cloud is now disrupting every industry it touches.”
Greg Satell, Forbes Magazine
“There are fundamental changes happening in the accounting industry and there are two options: exploit the changes or be affected by them.”
Gerhard Vorster, Chief Strategy Officer, Deloitte Australia
Are these a bunch of paranoid lunatics telling us the sky is falling? Perhaps, but not likely.
Consider the fact that tech giants like Microsoft, Google and Amazon are investing billions on cloud computing. Also, practically every hi-tech start-up company these days is either developing a new cloud service or using cloud services to operate. A good example is Xero, which not only offers a cloud accounting service, but also runs its business completely in the cloud.
So, how is digital disruption affecting the accounting profession specifically? Here are some of the changes happening right now:
Technology: cloud accounting is changing the way practices operate, enabling them to streamline their processes and offer value-added services to their clients.
Global economy: the Internet is making it possible for firms to work with clients remotely. As a result, local accounting firms are beginning to see competition from firms in other cities, and even other countries. Compliance work is quickly becoming a commodity. Billing is shifting from time and expense to recurring monthly fees based on a schedule of fixed prices.
Organisation: Progressive accounting firms have a local, customer-facing team that handles sales and advice, while all the back office work is either automated or done offshore. Also, the Internet facilitates the consolidation of local sole traders and partnerships into larger, regional accounting corporations.
Workforce: Millennials are entering the workforce, replacing the retiring baby boomers. They’re bringing with them the expectation of using the tools they’ve grow up with, namely mobile devices and online services.
Marketing: Increased competition is forcing firms to use innovative methods to attract new clients, including blogs and social media.
I’ll cover each of these changes in more detail in upcoming articles, and also offer some specific suggestions for turning digital disruption to your advantage. If you’d like to receive these articles when they’re published please sign up to our mailing list using the box at the top of this page.
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